{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/46.2-1573.6.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/46.2-1573.6.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/46.2-1573.6.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/46.2-1573.6.html"}],"law_id":72172,"edition_id":1,"section_id":72172,"structure_id":14812,"section_number":"46.2-1573.6","catch_line":"Manufacturer or distributor right of first refusal","history":"1995, cc. 767, 816, \u00a7 46.2-1977; 1996, cc. 1043, 1052; 2015, c. 615.","full_text":"Notwithstanding the terms of any franchise agreement, in the event of a proposed sale or transfer of a dealership, the manufacturer or distributor shall be permitted to exercise a right of first refusal to acquire the new recreational vehicle dealer’s assets or ownership, if such sale or transfer is conditioned upon the manufacturer’s or dealer’s entering into a dealer agreement with the proposed new owner or transferee, only if all the following requirements are met:\n\n1\n\nTo exercise its right of first refusal, the manufacturer or distributor must notify the dealer in writing within 45 days of its receipt of the completed proposal for the proposed sale or transfer;2\n\nThe exercise of the right of first refusal will result in the dealer’s and dealer owner’s receiving the same or greater consideration as they have contracted to receive in connection with the proposed change of ownership or transfer;3\n\nThe proposed sale or transfer of the dealership’s assets does not involve the transfer or sale to a member or members of the family of one or more dealer owners, or to a qualified manager or a partnership or corporation controlled by such persons; and4\n\nThe manufacturer or distributor agrees to pay the reasonable expenses, including attorney fees that do not exceed the usual, customary, and reasonable fees charged for similar work done for other clients, incurred by the proposed new owner and transferee prior to the manufacturer’s or distributor’s exercise of its right of first refusal in negotiating and implementing the contract for the proposed sale or transfer of the dealership or dealership assets. Notwithstanding the foregoing, no payment of such expenses and attorney fees shall be required if the dealer has not submitted or caused to be submitted an accounting of those expenses within 30 days of the dealer’s receipt of the manufacturer’s or distributor’s written request for such an accounting. Such accounting may be requested by a manufacturer or distributor before exercising its right of first refusal.","order_by":null,"text":{"0":{"id":259998,"text":"Notwithstanding the terms of any franchise agreement, in the event of a proposed sale or transfer of a dealership, the manufacturer or distributor shall be permitted to exercise a right of first refusal to acquire the new recreational vehicle dealer’s assets or ownership, if such sale or transfer is conditioned upon the manufacturer’s or dealer’s entering into a dealer agreement with the proposed new owner or transferee, only if all the following requirements are met:","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"1"},"1":{"id":259999,"text":"To exercise its right of first refusal, the manufacturer or distributor must notify the dealer in writing within 45 days of its receipt of the completed proposal for the proposed sale or transfer;","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"","next_prefix":"2"},"2":{"id":260000,"text":"The exercise of the right of first refusal will result in the dealer’s and dealer owner’s receiving the same or greater consideration as they have contracted to receive in connection with the proposed change of ownership or transfer;","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"3":{"id":260001,"text":"The proposed sale or transfer of the dealership’s assets does not involve the transfer or sale to a member or members of the family of one or more dealer owners, or to a qualified manager or a partnership or corporation controlled by such persons; and","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"4"},"4":{"id":260002,"text":"The manufacturer or distributor agrees to pay the reasonable expenses, including attorney fees that do not exceed the usual, customary, and reasonable fees charged for similar work done for other clients, incurred by the proposed new owner and transferee prior to the manufacturer’s or distributor’s exercise of its right of first refusal in negotiating and implementing the contract for the proposed sale or transfer of the dealership or dealership assets. Notwithstanding the foregoing, no payment of such expenses and attorney fees shall be required if the dealer has not submitted or caused to be submitted an accounting of those expenses within 30 days of the dealer’s receipt of the manufacturer’s or distributor’s written request for such an accounting. Such accounting may be requested by a manufacturer or distributor before exercising its right of first refusal.","type":"section","prefixes":["4"],"prefix":"4","entire_prefix":"4","prefix_anchor":"4","level":1,"prior_prefix":"3"}},"ancestry":[{"id":14812,"edition_id":1,"name":"Recreational Vehicle Franchises","identifier":"7.2","label":"article","depth":4,"order_by":1,"parent_id":13356,"metadata":{},"date_created":"2026-06-26 03:50:06","date_modified":"2026-06-26 03:50:06","permalink":{"id":231591,"object_type":"structure","relational_id":14812,"identifier":"7.2","token":"46.2\/IV\/15\/7.2","url":"\/46.2\/IV\/15\/7.2\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13356,"edition_id":1,"name":"Motor Vehicle Dealers","identifier":"15","label":"chapter","depth":3,"order_by":1,"parent_id":13355,"metadata":{},"date_created":"2026-06-26 03:44:42","date_modified":"2026-06-26 03:44:42","permalink":{"id":231067,"object_type":"structure","relational_id":13356,"identifier":"15","token":"46.2\/IV\/15","url":"\/46.2\/IV\/15\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13355,"edition_id":1,"name":"Dealers and Driver Training Schools","identifier":"IV","label":"subtitle","depth":2,"order_by":1,"parent_id":12770,"metadata":{},"date_created":"2026-06-26 03:44:42","date_modified":"2026-06-26 03:44:42","permalink":{"id":231065,"object_type":"structure","relational_id":13355,"identifier":"IV","token":"46.2\/IV","url":"\/46.2\/IV\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12770,"edition_id":1,"name":"Motor Vehicles","identifier":"46.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:52","date_modified":"2026-06-26 03:43:52","permalink":{"id":225289,"object_type":"structure","relational_id":12770,"identifier":"46.2","token":"46.2","url":"\/46.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":56650,"structure_id":14812,"section_number":"46.2-1573.10","catch_line":"Ownership of service facilities","url":"\/46.2-1573.10\/","token":"46.2\/IV\/15\/7.2\/46.2-1573.10","metadata":false},{"id":75844,"structure_id":14812,"section_number":"46.2-1573.11","catch_line":"Hearings and other remedies; civil penalties","url":"\/46.2-1573.11\/","token":"46.2\/IV\/15\/7.2\/46.2-1573.11","metadata":false},{"id":69977,"structure_id":14812,"section_number":"46.2-1573.12","catch_line":"Late model and factory repurchase franchises","url":"\/46.2-1573.12\/","token":"46.2\/IV\/15\/7.2\/46.2-1573.12","metadata":false},{"id":86707,"structure_id":14812,"section_number":"46.2-1573.2","catch_line":"Filing of franchises","url":"\/46.2-1573.2\/","token":"46.2\/IV\/15\/7.2\/46.2-1573.2","metadata":false},{"id":87096,"structure_id":14812,"section_number":"46.2-1573.3","catch_line":"Exemption of franchises from Retail Franchising Act","url":"\/46.2-1573.3\/","token":"46.2\/IV\/15\/7.2\/46.2-1573.3","metadata":false},{"id":73238,"structure_id":14812,"section_number":"46.2-1573.4","catch_line":"Coercion of retail dealer by manufacturer or distributor with respect to retail installment sales contracts prohibited; penalty","url":"\/46.2-1573.4\/","token":"46.2\/IV\/15\/7.2\/46.2-1573.4","metadata":false},{"id":87095,"structure_id":14812,"section_number":"46.2-1573.5","catch_line":"Other coercion of dealers; transfer, grant, succession to and cancellation of dealer franchises; delivery of recreational vehicles, parts, and accessories","url":"\/46.2-1573.5\/","token":"46.2\/IV\/15\/7.2\/46.2-1573.5","metadata":false},{"id":72172,"structure_id":14812,"section_number":"46.2-1573.6","catch_line":"Manufacturer or distributor right of first refusal","url":"\/46.2-1573.6\/","token":"46.2\/IV\/15\/7.2\/46.2-1573.6","metadata":false},{"id":62331,"structure_id":14812,"section_number":"46.2-1573.7","catch_line":"Discontinuation of distributors","url":"\/46.2-1573.7\/","token":"46.2\/IV\/15\/7.2\/46.2-1573.7","metadata":false},{"id":75261,"structure_id":14812,"section_number":"46.2-1573.8","catch_line":"Warranty obligations","url":"\/46.2-1573.8\/","token":"46.2\/IV\/15\/7.2\/46.2-1573.8","metadata":false},{"id":57972,"structure_id":14812,"section_number":"46.2-1573.9","catch_line":"Operation of dealership by manufacturer","url":"\/46.2-1573.9\/","token":"46.2\/IV\/15\/7.2\/46.2-1573.9","metadata":false}],"previous_section":{"id":87095,"structure_id":14812,"section_number":"46.2-1573.5","catch_line":"Other coercion of dealers; transfer, grant, succession to and cancellation of dealer franchises; delivery of recreational vehicles, parts, and accessories","url":"\/46.2-1573.5\/","token":"46.2\/IV\/15\/7.2\/46.2-1573.5","metadata":false},"next_section":{"id":62331,"structure_id":14812,"section_number":"46.2-1573.7","catch_line":"Discontinuation of distributors","url":"\/46.2-1573.7\/","token":"46.2\/IV\/15\/7.2\/46.2-1573.7","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/46.2-1573.6\/","history_text":"

This law was first created in 1995. The record of its establishment is cataloged in chapters 767<\/a> and 816<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 2 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1996, chapters 1043<\/a> and 1052<\/a>; in 2015, chapter 615<\/a>.<\/p>","references":false,"refers_to":false,"permalink":{"id":231621,"object_type":"law","relational_id":72172,"identifier":"46.2-1573.6","token":"46.2\/IV\/15\/7.2\/46.2-1573.6","url":"\/46.2-1573.6\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/46.2-1573.6\/","token":"46.2\/IV\/15\/7.2\/46.2-1573.6","dublin_core":{"Title":"Manufacturer or distributor right of first refusal","Type":"Text","Format":"text\/html","Identifier":"\u00a7 46.2-1573.6","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

Notwithstanding the terms of any franchise<\/span> agreement, in the event of a proposed sale or transfer of a dealership, the manufacturer<\/span> or distributor<\/span> shall be permitted to exercise a right of first refusal to acquire the new<\/span> recreational vehicle<\/span> dealer<\/span>’s assets<\/span> or ownership, if such sale or transfer is conditioned upon the manufacturer<\/span>’s or dealer<\/span>’s entering into a dealer<\/span> agreement with the proposed new<\/span> owner<\/span> or transferee, only if all the following requirements are met:<\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> To exercise its right of first refusal, the manufacturer<\/span> or distributor<\/span> must notify the dealer<\/span> in writing within 45 days of its receipt of the completed proposal for the proposed sale or transfer; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The exercise of the right of first refusal will result in the dealer<\/span>’s and dealer<\/span> owner<\/span>’s receiving the same or greater consideration as they have contracted to receive in connection with the proposed change of ownership or transfer; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The proposed sale or transfer of the dealership’s assets<\/span> does not involve the transfer or sale to a member or members of the family of one or more dealer<\/span> owners<\/span>, or to a qualified manager or a partnership or corporation controlled by such persons; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> The manufacturer<\/span> or distributor<\/span> agrees to pay the reasonable expenses, including attorney fees that do not exceed the usual, customary, and reasonable fees charged for similar work done for other clients, incurred by the proposed new<\/span> owner<\/span> and transferee prior to the manufacturer<\/span>’s or distributor<\/span>’s exercise of its right of first refusal in negotiating and implementing the contract<\/span> for the proposed sale or transfer of the dealership or dealership assets<\/span>. Notwithstanding the foregoing, no payment of such expenses and attorney fees shall be required if the dealer<\/span> has not submitted or caused to be submitted an accounting of those expenses within 30 days of the dealer<\/span>’s receipt of the manufacturer<\/span>’s or distributor<\/span>’s written request for such an accounting. Such accounting may be requested by a manufacturer<\/span> or distributor<\/span> before exercising its right of first refusal. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nMANUFACTURER OR DISTRIBUTOR RIGHT OF FIRST REFUSAL (\u00a7 46.2-1573.6)\n\nNotwithstanding the terms of any franchise agreement, in the event of a proposed\nsale or transfer of a dealership, the manufacturer or distributor shall be\npermitted to exercise a right of first refusal to acquire the new recreational\nvehicle dealer’s assets or ownership, if such sale or transfer is\nconditioned upon the manufacturer’s or dealer’s entering into a\ndealer agreement with the proposed new owner or transferee, only if all the\nfollowing requirements are met:\n\n1. To exercise its right of first refusal, the manufacturer or distributor must\nnotify the dealer in writing within 45 days of its receipt of the completed\nproposal for the proposed sale or transfer;\n\n2. The exercise of the right of first refusal will result in the dealer’s\nand dealer owner’s receiving the same or greater consideration as they\nhave contracted to receive in connection with the proposed change of ownership\nor transfer;\n\n3. The proposed sale or transfer of the dealership’s assets does not\ninvolve the transfer or sale to a member or members of the family of one or more\ndealer owners, or to a qualified manager or a partnership or corporation\ncontrolled by such persons; and\n\n4. The manufacturer or distributor agrees to pay the reasonable expenses,\nincluding attorney fees that do not exceed the usual, customary, and reasonable\nfees charged for similar work done for other clients, incurred by the proposed\nnew owner and transferee prior to the manufacturer’s or\ndistributor’s exercise of its right of first refusal in negotiating and\nimplementing the contract for the proposed sale or transfer of the dealership or\ndealership assets. Notwithstanding the foregoing, no payment of such expenses\nand attorney fees shall be required if the dealer has not submitted or caused to\nbe submitted an accounting of those expenses within 30 days of the\ndealer’s receipt of the manufacturer’s or distributor’s\nwritten request for such an accounting. Such accounting may be requested by a\nmanufacturer or distributor before exercising its right of first refusal.\n\nHISTORY: 1995, cc. 767, 816, \u00a7 46.2-1977; 1996, cc. 1043, 1052; 2015, c. 615.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}